Live update #5

Dave & Buster’s (PLAY) Options Positioning: Put/Call 0.43

From live coverage: Live: Will Dave & Buster's Smash Q2 Earnings Tonight After Falling 48% This Year?
PLAY
Dave & Buster's

Options positioning


Put/call 0.43Calls dominant
CallsPuts

ATM implied vol
163.4%
Expiry
Fri, Sep 18chain as of Fri, Sep 11

At-the-money implied vol of 163% into Friday's expiration says the options market expects tonight's earnings report to reset the stock. The 0.43 put/call ratio shows investors are heavily bullish on a turnaround, though this one-sided call buying could leave little room for disappointment. Open interest shows tension: calls stack up at $9 and $10 while the fattest put walls sit at $10 and $8.

Open interest near the money · puts / calls
  • $5

    9 / 22

  • $6

    270 / 45

  • $7

    1.1k / 23

  • $8

    2.4k / 462

  • $9

    1.6k / 1.3k

  • $10

    2.8k / 849

Contact [email protected] for any questions or corrections.

More From This Coverage

Newest first

Dave & Buster's Q2 Earnings Coverage Wrap-Up

Thomas Richmond

That wraps up our initial coverage of Dave & Buster’s Q2 results. Thank you for stopping by!

THE FLOOR

Thomas Richmond
THE FLOOR
Sep 14, 4:35pm ET

Report card grade for the quarter. D - Revenue: D. $544 million against a $557 million bar, with entertainment sliding to $332.6 million from $364.5 million. - Margins: F. Adjusted EBITDA margin at 18.2% versus 23.3%, and an adjusted loss of $0.27 where the Street wanted $0.19. - Cash: B. Six-month adjusted free cash flow swung to positive $19.5 million from negative $36.5 million, with $492.1 million of liquidity. Food and beverage at $211.5 million is the only growth line. Comps down 2.9% hold the overall grade at a D until the 5:00 p.m. ET call proves the July inflection is real.

Dave & Buster's (PLAY) Q3 2026 Earnings Call Preview

Thomas Richmond
PLAY
Dave & Buster's

Call preview · Q3 2026

Sep 14, 4:20pm ET

Mon, Sep 14
Earnings call · after close

Same-store sales have been analysts' biggest source of questions on every recent call, and with comps down 2.9% this quarter, the 5:00 PM ET earnings call turns on whether the CEO's claim of improving July trends holds into Q3. Analysts will also want the free cash flow and EBITDA targets restated after the margin slip, since the Back-to-Basics story leans on that swing.

Analyst hot topics · last 4 calls
Q1 26Q2 26Q4 26Q2 27
  • Same-store sales inflection & trends
  • Value proposition & game pricing
  • New store growth & CapEx discipline
  • Free cash flow & EBITDA targets
  • Marketing strategy & messaging
  • Amusement business & game newness

Dave & Buster's (PLAY) Q2 2027 Earnings

Thomas Richmond
PLAY
Dave & Buster's

Q2 2027

Sep 14, 4:13pm ET

EPS
-$0.27
est $0.19
-244.2%

Revenue
$544M
est $557M
-2.3%

Adjusted EBITDA margin compressed to 18.2% from 23.3%. Management says same-store sales have improved into the third quarter. Management noted, “We are laser-focused on returning to same-store sales and EBITDA growth, sharpening our margin management with cost-saving initiatives, generating significant free cash flow, and delivering meaningful shareholder value.”

THE FLOOR

Thomas Richmond
THE FLOOR
Sep 14, 4:16pm ET

One line in this release moved the right way. Adjusted free cash flow for the six months ended August 4 was positive $19.5 million, against negative $36.5 million in the same stretch last year, and Dave & Buster's closed the quarter with $492.1 million of available liquidity. That swing is the strongest item in the print and it buys the turnaround time. Management's full-year target was more than $100 million in free cash flow, leaving the bulk of it still to be earned in the back half.

Dave & Buster's (PLAY) Valuation Check

Thomas Richmond
PLAY
Dave & Buster's

Valuation · as of Sep 14

Sep 14, 4:00pm ET

$8.47+4.1%Target $17.00 · +100.7%
52-wk low $7.9452-wk high $24.99

Forward P/E
6.1×
PEG
1.5×
Price/Sales
0.1×
EV/EBITDA
9.8×
Price/Book
2.8×
Market cap $283M · Revenue -1.5% YoY
3 Buy8 Hold

At $8.47, just above the 52-week low of $7.94, the stock trades at 6x forward earnings and 0.14 times sales with revenue down 1.5% year over year. The $17 consensus target sits at double the current price, and 8 of 11 analysts still rate it a hold.

Dave & Buster’s Q2 Earnings Are Out - Stock Tanks 13% on 242% EPS Miss

Thomas Richmond

Dave & Buster’s just reported earnings, with shares initially dropping 13% following the report. Here are the key numbers:

  • Revenue: $544.10 million vs. $556.83 million expected
  • Adjusted EPS: -$0.27 vs. $0.19 expected

Both the top and bottom lines missed expectations, with revenue declining 2.4% year over year. Expectations were already low heading into the print, with consensus calling for roughly $0.19 per share.

Quick Read:

A double miss is hitting PLAY hard: Revenue fell about $13 million short of estimates, while the company swung to an adjusted loss versus expectations for a profit.

With shares already deeply depressed entering earnings, tonight’s 13% drop suggests investors wanted clearer evidence that Dave & Buster’s operating trends are stabilizing.

THE SETUP

Thomas Richmond
THE SETUP
Sep 14, 3:15pm ET

Dave & Buster's has cleared consensus once in its last four earnings reports, and the misses have widened each time, from 25% short in Q1 2026 to 177% short last quarter. That pattern is the real reason tonight's report is being treated as a referendum on management rather than a quarter.

Dave & Buster's (PLAY) Thesis Check

Thomas Richmond
PLAY
Dave & Buster's

Thesis check

Sep 14, 3:10pm ET

weakening$8.37 +2.8% today
“New management's turnaround plan restores comps and free cash flow at Dave & Buster's”

Bull case
  • Buyers stepping in ahead of the report, shares up 2.8% to $8.37
  • Management guided to positive comparable sales for the rest of fiscal 2026 and over $100 million in full-year free cash flow
  • Call-heavy options positioning at a 0.43 put/call ratio
Bear case
  • Q4 2026 EPS of -$0.35 against a $0.46 estimate, with revenue of $530 million missing a $555 million bar
  • Shares down 23.2% since that last report and 48% year to date
  • Polymarket traders at just 51% odds of a beat, drifting lower this week
  • Market cap shrunk to roughly $293 million

The load-bearing piece is comparable sales turning positive, and after last quarter's revenue shortfall that is the one promise tonight has to validate. As we noted at 1:48 p.m. ET, traders extended management credit on the last report and then pulled it back over the following months. Positive comps plus a reaffirmed free cash flow target would flip this back to intact.

Dave & Buster's (PLAY): The Margin Story

Thomas Richmond
PLAY
Dave & Buster's

Margin story · Q3 2024 – Q2 2026

Sep 14, 2:15pm ET

Gross
14.6%-70.9pp YoY
Operating
9.7%-2.5pp YoY
Net
1.0%-2.8pp YoY

Gross margin has averaged around 35% over the past several quarters, but the damage the company is seeing is coming below that line. Operating margin swung from 12.2% in Q2 2025 to negative territory in Q4 2025 and Q1 2026 before clawing back to 9.7% last quarter on $559 million of revenue. Whether the operating margin recovery holds will likely determine how the market digests this quarter's results, since cost control is where the turnaround has been leaking.

Operating margin by quarter

16.6%6.30%-4.02%

Dave & Buster's (PLAY): How the Big Money Is Positioned

Thomas Richmond
PLAY
Dave & Buster's

Tracked 13F positioning

Sep 14, 2:10pm ET

$32Macross 8 tracked filers
3 added · 1 trimmed · 1 new · 1 exited

  • Two Sigma Investments LLC

    $12MNew

  • Point72 Asset Management LP

    $8M+0.4%

  • Saba Capital Management LP

    $4M0.0%

  • D. E. Shaw & Co Inc

    $4M+0.6%

  • Tudor Investment Corp

    $3M—

  • Brevan Howard

    $270K—

  • Marshall Wace LLP

    $196K—

  • Millennium Management LLC

    $180K-1.0%

+ 1 more tracked holder

As of Jun 30, 2026 quarter end · 13F disclosures lag ~45 days — long positions only, tracked filers only.

Two Sigma opened the largest position in the tracked group during the June quarter, and Point72 and D. E. Shaw both added, per filings disclosed as of June 30 among the eight filers we track. This shows hedge fund conviction building into tonight's report, though the 45-day lag means these funds might not be positioned this way right now.

Dave & Buster's (PLAY) Technical Setup

Thomas Richmond
PLAY
Dave & Buster's

Technical setup

Sep 14, 2:00pm ET

Support & resistance · chart through Mon, Sep 14
  • R2$13.93+68.0%
  • R1$13.51+63.0%
  • Now$8.29
  • S1$7.94-4.2%
50-day avg
$9.90-16.3% below
200-day avg
$13.36-37.9% below
52-week range
$7.94 – $24.99

At $8.29, Dave & Buster's sits just 35 cents above its 52-week low of $7.94, which doubles as the only support on the board. A miss tonight puts that floor in play immediately, while the 50-day average at $9.90 is the first real hurdle for any relief move, with the 200-day still up at $13.36.

Prediction Markets: Will Dave and Buster's (PLAY) beat quarterly earnings?

Thomas Richmond
PLAY
Dave & Buster's

Prediction markets

Sep 14, 1:15pm ET

Will Dave and Buster's (PLAY) beat quarterly earnings?
51%Yes-0.5pp this week
Polymarket · $778 traded · resolves Mon, Sep 14

Traders on Polymarket are effectively flipping a coin on whether Dave & Buster's clears the bar tonight, with the yes side drifting slightly lower ahead of the 4:05 p.m. ET release. A 50/50 reading on a stock down sharply this year shows that the market still believes the turnaround is genuinely unresolved.

Yes probability

51.0%50.8%50.5%

Dave & Buster's (PLAY): What Happened Last Quarter

Thomas Richmond
PLAY
Dave & Buster's

Last quarter — Q4 2026

Sep 14, 1:05pm ET

EPS
-$0.35vs $0.46 est -176.9%
Revenue
$530Mvs $555M est -4.6%
Earnings-day move +16.1%Since report -23.2%

Traders bid the stock up on the last report even as both lines came in short, betting the turnaround plan mattered more than the quarter itself. That patience has since drained away, and tonight's report is the first real test of management's promise of positive comparable sales and full-year free cash flow above $100 million.

Price since the report

$15$11$7.6

Reported Tue, Mar 31 · next print Mon, Sep 14

Dave & Buster's (PLAY) Stock Jumps 3.1% Today

Thomas Richmond
PLAY
Dave & Buster's

Regular session

Sep 14, 12:55pm ET

$8.39
+3.13%
open $8.14

$8.4$8.3$8.1

Buyers are stepping in at $8.40 hours before Dave & Buster's reports earnings today, a bold bet on a company whose market cap has shrunk to roughly $291 million. The results land with the stock priced for almost nothing to go right.

Stay On This Page to Receive Live Dave & Buster's Q2 Earnings Updates

Thomas Richmond

This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. Simply stay on this page, and new updates will appear below automatically.

We expect Dave & Buster’s to release Q2 earnings shortly after 4:05 p.m. ET.

Dave & Buster’s Down 48% This Year Ahead of Q2 Earnings and New CEO

Thomas Richmond

Dave & Buster’s reports second-quarter fiscal 2026 results at 4:05 PM ET tonight, with investors focused on whether the company’s turnaround is finally gaining traction.

Management entered the quarter expecting positive comparable-store sales for the remainder of fiscal 2026 and more than $100 million in full-year free cash flow.

But expectations have fallen sharply. Consensus EPS has dropped from $0.8363 just 30 days ago to $0.1872 today as softer traffic has weighed on the outlook. That follows a first quarter in which comparable-store sales fell 5.4% and adjusted EPS of $0.22 missed expectations.

With PLAY shares down more than 60% over the past 12 months, investors have already priced in considerable trouble. The key question tonight is whether management can show a credible inflection in comparable sales while maintaining its free cash flow outlook. Another guidance cut or continued comp weakness would suggest Dave & Buster’s problems run deeper than a temporary traffic slowdown.

View the full live blog (18 updates) →